Cut number in the Vehicle Service Contract

Aug 6th, 2022
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How to cut number in the Vehicle Service Contract

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(upbeat music) - Did you know, ing to recent research, 53% of customers who purchase a vehicle service contract go on to use it? Hi, Im Steve, an Area Manager with Assurant Resource Automotive. We know customers use a vehicle service contract, but are you doing everything you can to get them to purchase one? And the challenge some dealers face is that a vehicle service contract is not being offered to their customers 100% of the time. By following the 300% rule, which is 100% of the products to 100% of the customers, 100% of the time, this allows the customer the opportunity to take advantage of a vehicle service contract. By doing so, this will improve the customers overall ownership experience, assist in driving your dealerships production, all while maintaining compliant selling practices. This is a simple and effective step that you can in your dealership today to help overcome this challenge.

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Responsibilities/Scope of Work: A clause that clearly explains the obligations and duties of each party to the contract is one of the most important contract terms to include in your entire contract. This clause requires attention to detail and will be very specific to the nature of the services to be performed.
It may include information like pricing, ownership, shipment details, and much more. These agreements protect both the service provider and the customer by creating clear and enforceable guidelines both parties can follow. A Standard Service Agreement is a templated version that your business will use for most clients.
For example, a Service Contract might be used to define a work-agreement between a contractor and a homeowner. Or, a contract could be used between a business and a freelance web designer. Most often, Service Contracts include details such as deadlines and payment agreements.
Also, you can cancel a service contract after 60 days and receive a partial refund.
All VSCs are cancelable under California Civil Code Section 1794.41. The obligor must give you a full refund of the VSC purchase price if you meet all of the following requirements: You cancel the VSC within 60 days after receiving the contract, or 30 days if your car is used and came without a manufacturer warranty.
It is common for VSCs and MBI policies to offer coverage for towing and rental car costs that you incur while your vehicle is being repaired. Some agreements also provide coverage for lost or damaged key fobs, windshield damage, paintless dent repair (PDR), or damage to tires and wheels from road hazards.
Notable Features of Service Contracts The characteristics include: No long-term commitment: The contract is for a specified amount of work or for a particular period. Payment upon project completion: The service provider is paid when the service is provided or project completed, not on a regular basis like an employee.
What is a Service Contract? A service contract is an agreement between you or your business and the clients or customers you serve. This document outlines the terms and conditions of the services you will provide.

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